Study: Mortgage Jobs Keep Shifting to Non-Banks

For the sixth consecutive year, employment in the mortgage industry shifted from depositories to non-bank competitors, according to the 2018 Mortgage Industry Report published by the Conference of State Bank Supervisors (CSBS).

The report covers all state-licensed and federally registered mortgage loan originators, companies and bank branches operating last year, with data collected from the mortgage call report function of the Nationwide Multistate Licensing System (NMLS). The report determined there were 165,240 mortgage loan originators (MLOs) working in non-bank companies during 2018, up from 158,200 in 2017 and 145,200 in 2016. In comparison, 415,517 MLOs worked at depositories, down from 421,700 in 2017 and 422,600 in 2016.

Furthermore, the CSBS report noted there were 17,572 nonbank mortgage entities operating in 2018, up from 17,000 in 2017 and 16,300 in 2016. In comparison, the 9,196 depositories cited by the CSBS in 2018 were less than the 9,500 recorded in 2017 and 9,800. Nonbank mortgage firms operating nationwide originated 56 percent of non-bank mortgage loans by dollar volume in 2018, although total originations declined by 6.9 percent to $893 billion compared to the year before.

Since the CSBS has been tracking this data in 2012, the number of nonbank MLOs and companies, while the number of depository-based MLOs fluctuated but have mostly been in decline while the number of depositories has diminished.

“Employment in the mortgage origination industry continued to experience a shift towards nonbanks and away from depositories,” said John Ducrest, commissioner of the Louisiana Office of Financial Institutions and chairman of the CSBS subsidiary that operates NMLS. “For state regulators, the Mortgage Industry Report offers vital insight into industry trends and specific companies, which improves our ability to support local communities and protect consumers.”